An oil well site in the Permian Basin owned by a bankrupt shale producer has spewed polluting gases into the atmosphere for 10 months, despite being investigated by Texas regulators, according to an environmental group.
Infrared video footage collected during multiple visits from November 2019 through September show "intense and significant" emissions from MDC Energy LLC's Pick Pocket location in West Texas, Earthworks said in a letter to two state regulatory agencies on Thursday. The group called on the Texas Commission on Environmental Quality and the Texas Railroad Commission to rescind permits for MDC.
"TCEQ and RRC must properly address these intense emissions including, but not limited to, volatile organic compounds (VOCs), methane, and hydrogen sulfide," Sharon Wilson, Earthworks' thermographer, wrote in the letter.
TCEQ said in a statement that it would look into the issues raised in Wilson's letter. An enforcement case for complaints raised about MDC's operations "is currently under development and will include the assessment of an administrative penalty and corrective actions, as needed," the agency said. The RRC didn't immediately have comment.
As the list of U.S. oil companies collapsing into bankruptcy grows, concerns are mounting about what happens to their wells if they're unable to pay to maintain or properly plug them. Millions of wells have been left abandoned across the country, many of which have been found to leak methane. That's drawn particular scrutiny because methane is a greenhouse gas that retains far more heat in the atmosphere upon its release than carbon dioxide.
Texas has taken a friendly stance toward the shale industry. But, more recently, some of the industry's biggest investors, and even some oil producers, have called for stricter regulations. Another major environmental concern is the widespread industry practice of flaring in which producers burn off excess natural gas. Recent surveys by the Environmental Defense Fund found flares in the Permian are frequently unlit or malfunctioning, meaning methane is being released directly into the air.
Earthworks filed a series of complaints last December documenting emissions captured at the Pick Pocket location. Four months later, in April, TCEQ conducted an investigation of the site.
That investigation resulted in six notices of violations, two of which were for equipment failures. The company was given until Aug. 10 to regain compliance. But Wilson said she continued to record emissions when she visited the site in September.
MDC Energy's parent company, owned by real estate developer Mark Siffin, filed for bankruptcy last October, owing more than $400 million in funded debt. The company is now seeking court approval to start a bankruptcy sale process while continuing to solicit offers to finance its way out of Chapter 11. Siffin didn't immediately respond to an email seeking comment.